One of Bitcoin’s most significant pushes has been for the digital asset to replace fiat money as the world’s accepted mode of payment. It is still a push among crypto aficionados but to a lesser extent. This is because the asset has risen so much that investors prefer to retain the cryptocurrency and profit from it and then buy anything.
Bitcoin has undeniably demonstrated its ability to accomplish all – and more – that it was designed to do, but with an asset as rare as it is, it has made more sense to hang on to the cryptocurrency for the long term. Celsius CEO Alex Mashinksy shared some fascinating views into the usage of bitcoin as a means of payment, revealing that the CEO was not a fan.
Without question, bitcoin is one of the most effective value storage of the last decade. The deflationary asset has produced returns that have rivaled and continue to outperform the greats in the financial realm. However, one aspect of bitcoin’s expected future that has yet to be realized is its usage as a means of payment.
Many people have no qualms about utilizing the digital asset as a form of payment when it wasn’t worth much. This also meant that transaction costs were extremely low. However, as time passed, bitcoin proved to be a legitimate store of wealth, virtually eliminating the thought of utilizing it as a payment method from investors’ minds.
In an interview with Coin Stories, Alex Mashinksy discussed the use of bitcoin to pay for products and services. Bitcoin, according to Mashinksy, is a poor method of payment.
In the interview, the CEO stated that Bitcoin should be utilized as a store of wealth, while the dollar might be used as a means of payment.
“The dollar is a phenomenal form of payment. It’s a horrible store of value and Bitcoin is a phenomenal store value, but it’s a pretty bad form of payment.”
Another aspect raised by Mashinksy during his interview was the appreciation of BTC with time, whereas the acquired object depreciates over time. The CEO cites people who used bitcoin to acquire an electric automobile from Tesla. The EV manufacturer revealed earlier this year that it would accept bitcoin payments for its vehicles. Bitcoin users celebrated and went to Tesla to acquire a vehicle.
At the time, bitcoin was still hovering around the $40K mark, and one Tesla might fetch as much as two or three bitcoins. By the fourth quarter of the year, BTC had surged to new all-time highs. Meanwhile, the automobiles acquired earlier in the year have deteriorated since then. The CEO of Celsius claimed that individuals would regret buying products with BTC because they would realize how precious the coins are and wish they could go back in time and preserve their bitcoins instead.
“Anything you bought with Bitcoin in the previous ten years, you’d prefer to get the Bitcoin back and pay in US dollars,” Mashinksy explained. “That’s really the core of the issue: you can’t utilize it as a kind of payment or in a way that makes you happy about the transaction.”
